Glossary

Entities

Administrative dissolution

Administrative dissolution is when a US state terminates a company's existence for failing to meet requirements such as filing annual reports, paying fees or maintaining a registered agent. The company ceases to exist as a legal entity, though reinstatement is usually possible.

In plain terms: The state closes your company because you stopped filing.

Why it matters

It happens quietly and often to companies whose owners believe they are dormant rather than delinquent. Operating a dissolved entity may mean there is no entity between you and a claim — the practical risk is not the fee but the protection you assumed was there.

Read the full guideCompliance

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